Page 12 - DEBK-VOL-2

9.2 Double Entry Book Keeping—CBSE XII
6. Share Capital Share Capital means the share capital issued and subscribed. Share Capital
of a company limited by shares is of two kinds, namely,

(A) Preference Share Capital, and
(B) Equity Share Capital.

7. Preference Share Capital It is a kind of share capital which carries preferential rights in respect of
payment of dividend and repayment of capital over Equity Share Capital,
if the company is wound-up.

8. Equity Share Capital It is that share capital which is not Preference Share Capital.

9. Allotment of Shares Allotment is the allocation of shares to the successful applicants
by the directors of a company.

10. Allotment Money The amount payable on allotment is called ‘Allotment Money’.

11. Authorised or Nominal ‘Authorised Capital’ or ‘Nominal Capital’ means such capital as is
Capital authorised by the Memorandum of a company to be the maximum amount
of Share Capital of the company.
[Section 2(8) of the Companies Act, 2013]
It is the maximum amount of capital which the company is, for the
time being, authorised to raise.

12. Issued Capital ‘Issued Capital’ means such capital as the company issues from time
to time for Subscription. [Section 2(50) of the Companies Act, 2013]

13. Subscribed Capital ‘Subscribed Capital’ means such part of the capital which is for the time
being subscribed by the members of a company.
[Section 2(86) of the Companies Act, 2013]

14. Paid-up Share Capital or ‘Paid-up Share Capital’ or ‘Share Capital Paid-up’ means such
Share Capital Paid-up aggregate of money credited and paid-up as is equivalent to the amount
received as paid-up in respect of shares issued and also includes any amount
credited as paid-up in respect of shares of a company, but does not include any
other amount received in respect of such shares, by whatever name called.
[Section 2(64) of the Companies Act, 2013]

15. Subscribed and Fully It is the amount of share capital issued by a company that is
Paid-up subscribed on which the company has called and also received entire
nominal (face) value of the share.